David Cameron 'committed to ending tax abuse'

The Prime Minister is confident the Government can stop abuse of the tax
system without hitting charitable donations.

2:44PM BST 11 Apr 2012

The Prime Minister hinted that proposed changes to donation rules could be focused on gifts to non-British charities.

Currently, higher-rate taxpayers donating to a charity can reclaim more than half of the tax. From April, the maximum will be £50,000 per year, or 25 per cent of the individual’s income.

Ministers say the change is needed because some rich people are abusing the relief to cut their income tax bill. Charities have said the move will deprive good causes of significant donations.

Speaking in Jakarta, Mr Cameron said the principle of tightening up on tax relief was sound, because “there is no doubt that abuse is taking place.”

He said: “We’re very clearly informed of that, by the Inland Revenue, some people have been using charities established in other countries to funnel money in and get their tax rates so they’re not paying 50p tax or even 45p tax but in some cases are paying 10 or 20 per cent tax, and I think that isn’t right."